Insulation is only considered an "Eligible Building Envelope
Component" if it is specifically and primarily
designed to reduce
heat loss or gain of a dwelling unit when installed in or on
the dwelling unit.
The
credit amount established by
25C of the Internal Revenue
Code is:
-
10% of the amount paid or incurred by the taxpayer
for qualified energy efficiency improvements
installed during the taxable year.
-
Up to maximum credit of $500.00 for all taxable
years (all improvements combined).
-
Allowed only for amounts paid or incurred
to purchase the insulation.
-
Not allowed for amounts paid for onsite preparation,
assembly, original installation labor, siding or
sales tax.
-
The purchase must be made during the taxable year
for which the credit is claimed.
-
Retroactive and with time limits, covering
product in service after
December 31, 2005
and before
January 1, 2008.
The Energy Tax Credit
information contained on the Cranor Homes site is not
complete or comprehensive. For the entire scope of
information about the Credit for Non-Business Energy
Property 25C, please visit:
http://www.irs.gov/pub/irs-drop/n-06-26.pdf
Claiming
Your Tax Credit
After establishing your eligibility to claim a Tax Credit
for Non-Business Energy Property § 25C, please complete the
following to ensure accuracy:
-
Request
an invoice demonstrating the cost breakout of the
insulation material from your contractor. This cost must
exclude the cost of onsite preparation, assembly,
original installation labor, siding or sales tax.
-
Download
the applicable official Manufacturer's Certificate PDF
following the links below (Adobe Acrobat Reader
required).
-
Retain
the contractor invoice and our official Manufacturer's
Certificate for your IRS records. You are not
required to provide this documentation to the IRS, but
you will be required to present it if audited.
